Ousted insurance exec: 'People are afraid of the administration'

Mario Molina has been the most outspoken health insurance executive in the country.

The CEO of Molina Healthcare was a vocal proponent of Obamacare, despite his company’s recent struggles in the exchange marketplaces, and has blasted congressional Republicans' repeal effort as a wrongheaded plan that will hurt poor people and the elderly.

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On Tuesday, Molina was suddenly fired from the company his father founded nearly four decades ago.

Was his outspoken advocacy a factor in his newly unemployed status? In his most extensive remarks since being fired, Molina wouldn’t make that case explicitly, but suggested it played a role.

“I’ve been a very vocal critic of what’s going on in Washington,” Molina told POLITICO. “I know the other health plan executives have been afraid to speak out. Maybe they’re smarter than I am, but I’m not going to back off.”

Molina also didn't hold back when asked why other health plans have been quiet about the proposed repeal of legislation that has expanded coverage to 20 million Americans and yielded the lowest uninsured rate ever recorded.

“They don’t like the health insurance tax and they would like to return to a time when they could exclude people with pre-existing conditions,” Molina said. “For them, it would be a good thing to go back to the old way of doing things.”

He also thinks fear is helping keep insurers quiet.

“People are afraid of the administration,” he argues. “Why take an aggressive stance if you think you have nothing to gain, or if you think you have something to lose?”

Molina points to a couple of factors that make the timing of his termination surprising. For starters, Molina Healthcare actually beat Wall Street’s expectations when it reported first-quarter results on Tuesday. In addition, the Long Beach, California-based company announced significant improvement in its Obamacare business, which had been a major concern last year.

“The issues that were a problem in the fourth quarter don’t appear to be a problem anymore,” Molina said. “It does make you wonder.”

Wall Street analysts have suggested that the shakeup, which also included the ouster of CFO John Molina (Molina's brother), raises the prospects of Molina being purchased by another insurer. The company’s stock price has surged about 25 percent since the moves were announced.

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“I’m not aware that anyone is trying to acquire the company,” Molina said. “Certainly, with John and I out of the way, it would make it easier.”

Molina plans to keep making his views known. He continues to blast the GOP’s American Health Care Act, arguing that it will lead to unaffordable coverage, especially for older Americans, and deep Medicaid cuts that will hurt poor people.

“The most troubling development has been the attempt to get votes from the Freedom Caucus by allowing states to get rid of the ban on pre-existing conditions,” Molina said.

He also had harsh words for the Trump administration, which is threatening to cut off crucial subsidies that insurers rely on to hold down costs for their poorest Obamacare customers.

“The Trump administration is destabilizing [the marketplaces],” he said. “Health plans need to plan ahead. He can pull the rug out from the health plans at any minute.”

Molina is not walking away from the company he ran for two decades. He remains a board member and the single largest shareholder. But he indicated that he’ll try not to hover as interim CEO Joseph White seeks to lead the company through turbulent times.